In Piracy, Intellectual Property, Such as Computer Software, Music Discs

question 58

True/False

In piracy, intellectual property, such as computer software, music discs, and videos, is an example of a minor threat to original manufacturers.

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Definitions:

Spending Multiplier

A concept in Keynesian economics that quantifies the effect of an increase in autonomous spending on the total economic output.

Potential Output

The highest level of economic output that can be sustained over the long term without increasing inflation.

MPC

Marginal Propensity to Consume, which indicates the fraction of additional income that a household is likely to spend on consumption.

Contractionary Fiscal Policy

Economic measures employed by a government to reduce its expenditures or increase taxes with the aim of slowing down an overheated economy.